Economic review

Reflation: the buzzword used for global growth which seems to be realising.

Business review

The Stellenbosch Wine Routes organisation was named world champion for the third year running. This area is part of the 6 most popular tourist attractions in South Africa.

Die ore v/d seekoei? Some 14 days ago, reports surfaced that all at the SABS was not well. This prompted a flood of other reports indicating that problems with testing and certification by that body is much more widespread than had initially been reported.

Scent of a woman? A perfume company is manufacturing and selling practically scentless cologne. The idea is that the substance sold would mingle with the wearer’s natural pheromones and create a unique scent. Depending on one’s perspective, this is great for men who are clueless… you don’t have to decide on a scent and it’s probably very expensive.

The online trading centre known as Trading To get Results, is reportedly fraudulent. Mr Klug complained that he was promised growth of between 40 and 60% in the first 12 months when making his investment. A registration fee of R4950 was required, which would be refunded if the growth was not as expected. Go figure.

The hype and bs that is whipped up in the discussions around the National Health Insurance white paper, is amazing. The wealthy certainly are not interested as their perception, rightly so, is that this is merely another form of tax and the poor, quite obviously, seek to tap into better medical aid facilities. The fact is that the really wealthy will hardly be affected by whatever one attempts to institutionalise and the balance of our population will be lumped into a single service group funded primarily by those who would ordinarily pay for their own medical aid anyway. As more services are spread amongst many, the standards must needs drop. Arguing that medical aid is a crime against humanity as it worsens inequality, is disingenuous. Medical aid simply excludes those who don’t pay.

On February 22 at 5 PM TMJ will offer a Labour law update at our offices. Ask me for an invite.

The Institute of Arts & Ideas punts itself as the alternative to Ted Talks. Take a look at https://iai.tv/video/owning-ourselves which deals, amongst other things, with the right to life.

Property review

SA equities strongly outperformed listed property this January last. The ALSI returned a total performance of 4.3% followed by the SAPY at 1.6%. Redefine Properties, our 2nd largest REIT, returned -0.45%. Despite this, over the past 12 months, listed property has delivered a 15.4% total return, outperforming equities which stands at 10.3%.

Ooba reports that home loan lenders are becoming more cautious and cites as evidence a 5.5% yoy increase in the average deposit as a percentage of home purchase prices in the 4th quarter of last year. The current average percentage required as a deposit, has increased to 17.4%. In comparison FNB reports that its average loan to purchase price ratio stands at 88.5%. Despite this some 42.9% of total bonds were granted at a 100% and above basis, of the property value.

Estate agents might take note of the Brodsky case dealt with below.

Practice review

The following are a few notes drawn from the recent discussions, amongst others by West, which affect daily conveyancing practice:

No diagram for a servitude of habitatio will be required where a conveyancer can certify that there is only one dwelling on the land. We return to the “old” position.

Additional amounts on bonds do not need to be disclosed

The date, for transfer duty purposes, of negative servitudes created in a power of attorney in terms of section 65, is the date of the acceptance theereof.

Electrical compliance certificates: West thinks – on the strength of an opinion – that these are not required by the relevant legislation. Perhaps: explain this to a municipality which requires this to be lodged?

A divorce agreement, which has been made an order of court, may be amended by the parties concerned, provided that the interests of third parties are not affected.

Cases and such

The Petroleum Products Act, PAJA and arbitration

The case below is of little interest to most of us in that only specialists would have any interest in whether section 12B of the above act constitutes a contractual practice etc. What is of interest is a number of arguments which deal with questions such as whether one can arbitrate under a contract of which the validity is in dispute. The issue of fairness in our law is also aired.

The Business Zone 1010 CCT 09/16

Property owner's liability for a tenant's actions

In this case an illegal billboard was erected on a property by a tenant. The local authority had a go at the owner. The owner argued that it was not the owner of the sign and had no obligation to comply with the relevant bylaws. The court introduced a public policy element, saying that an owner could not take a revenue and allow continuing illegal activity by its tenant. In any event, in terms of our common law, it was the responsibility of the owner to a halt a nuisance or remove danger from the property which it owned.

The judgement of the Concourt, referred to below, is of little interest save that it deals with when a postponement may be granted. For those who are interested, § 31 et seq

Psychological Society V Qwelane CCT 226/16

Fidelity fund certificate held by a company

Where an estate agent is a company, both the individual and the company must hold a fidelity fund certificate, in default of which no commission is payable. In this case the company allegedly had held such a certificate but had converted from a company to a CC. Similarly, the relevant individual held a certificate in his capacity as director of the company but not the CC. Does this amount to substantial compliance? It was also argued that a part of the transaction, which dealt with the sale of shares of the enterprise sold, did not fall the definition in the act which holds that a person who “sells… or exhibits for sale immovable property or any business undertaking” requires such a certificate,and thus did not fall foul of the act. The Supreme Court of Appeal held that the certificates held were not valid. Furthermore, the description of a business undertaking in the act, did apply to the sale of the shares in this case. Resultantly no commission was payable.

Quotables

"History ought never to be confused with nostalgia. It's written not to revere the dead, but to inspire the living. It is part of our cultural bloodstream, the secret of who we are. And it tells us to let go of the past, even as we honour it; to lament what ought to be lamented; and to celebrate what should be celebrated."

Schama

Comment

It is interesting to note that president Zuma has overridden Eskom’s qualms about signing up some 40 suppliers of alternative/renewable electricity. One can but wonder whether this move to resolve the impasse, will push Eskom further into the red… which will presumably only happen if that entity was being straight with us in the first place. This clearly is a political and not a financial decision?

Farming is what carries our civilisation? An interesting but hardly publicised thought that I chanced across this week, was a write-up on a history of humankind by Harari. He says that the agricultural revolution was a Faustian bargain which brought a worse diet, longer hours of work, greater risk of starvation, crowded living conditions, susceptibility to disease, and uglier forms of hierarchy. I have little doubt that he may be right but one wonders whether the achievements of humankind would have been possible without this?

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